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Real Estate Bisnow
   
January 9, 2013 
 
 
Boxer Buys Five

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Boxer Property is back in its old stomping grounds, Northwest Houston, purchasing five properties in December. 290 welcomes you back.
 
Andre Pereira and David Kayle
Boxer directors of acquisition Andre Pereira and David Kayle tell us the five assets total 370k SF, and it’s just coincidence that they’re in the same submarket. (Well call us romantic, but we call it fate.) Although Boxer expanded into new areas in 2012, purchasing hospitality and Class-A properties, these were bread and butter deals for the firm: value-add multitenant buildings in need of lease-up. The properties are 507, 519, and 523 North Sam Houston Parkway E (totaling 236k SF and averaging 50% occupancy); 5005 Mitchelldale; and 5600 Northwest Central Dr (62k SF and 45% leased).
 
Brookfield Mini3 HOU
5005 Mitchelldale
Here's 5005 Mitchelldale. The 76k SF property is only 5% leased, and Boxer plans to renovate it. Andre says it has great visibility off the high-traffic intersection of 290 and W. 34th. (It's also great for anybody walking by who needs to fix their hair.) Andre hopes to have a robust year of acquisitions (in 2012 it purchased 2.5M SF nationwide), but its focus may have to lie outside Houston. Our market has gotten incredibly tight and local guys like Boxer are having trouble competing, even in Class-B product.
Doug Pack and John McAllister
In other Boxer news, in 45 days it received seven new leasing and management assignments totaling 600k SF in Houston and Dallas. Above, asset manager John McAllister and director of asset management Doug Pack, who negotiated the agreements. In Houston, that includes 123k SF Four Sugar Grove and 155k SF 2550 North Loop W. Boxer now manages 5M SF nationwide.

Industrial Strength
 
Rob Stillwell, Pat O'Connor, Jeremy Garner
Industrial economic drivers are doing very well, which means the sector may continue its stellar trajectory. We found some enthusiastic experts at O’Connor & Associates’ industrial luncheon: Newmark Grubb Knight Frank SVP Rob Stillwell, O’Connor & Associates prez Pat O’Connor, and Trammell Crow SVP Jeremy Garner (aka: the brave man who rejects the hypnotic power of the red tie). Rob says petrochemical companies are growing with numerous major plant expansions under way, and port general cargo is up 8% from ’11. It’s forecasted to grow 5% in ’13, a very conservative bet. He says the development sweet spot is 25k to 50k SF on three to five acres, but building size is jumping. There are 69 buildings proposed for 2013 totaling 11.6M SF. That averages 168k SF per building.
Jeremy Garner
Jeremy says Houston is already at historical low vacancy (5.2%) and absorption is outpacing construction (5M SF net absorption last year versus 4.2M SF in the ground). And unusually for Houston, lots of projects under development are pre-leased; only 2.3M SF is available for future demand. He thinks the hot crane-ready and crane-served sector will soften in '13, while demand for distribution space will continue to increase. Most spec space has been crane-ready product, so we may see a particular shortage of distribution facilities.

Houston Apartment Association’s Run for '13
 
Jeff and Karyn Hall
Houston Apartment Association (HAA) EVP Jeff Hall (seen here with daughter Karyn) says the marathon run of events continues this year. First: the Installation Gala, not for President Obama but for Greystar’s Mack Armstrong, who will be serving as the HAA president. The event is Western-themed with a touch of high society (just like Houston itself): boots, baubles and black tie. The first big industry information session for the year is HAA’s state of the industry program on Jan. 29. Orion Real Estate Services principal Kirk Tate moderates, with local experts talking still-hot multifamily. Another huge 2013 happening: the meeting of the Texas legislature, which only happens every other year. The HAA is keeping a close eye focused on the session, to ensure that Texas remains a friendly climate for multifamily development and operations. Also, some teeth will be sunk into legislation that helps prevent arbitrary tax appraisals and increases. For more info on our sponsor, click here.

Gig 'Em
 
Cameron Family
Here’s one family excited about A&M’s Cotton Bowl win: Skanska development manager Cameron Alexander’s kids and dog wore their finest. Cameron assures us the pooch (named Butkus after the Bears linebacker) isn’t unhappy to be cheering for the Aggies…he’s unhappy all the time. Cameron is having a lucky football year—Rice, where he got his MBA, won the Armed Forces Bowl. Now we’re counting on him to pull the Texans to Super Bowl victory! (No pressure, Cameron.)

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